Bitcoin Price Drops Below $105,000 May Trigger $1.27 Billion Long Liquidations

According to data from Coinglass, if Bitcoin's price falls below $105,000, the total liquidation amount of long positions on mainstream centralized exchanges (CEXs) would reach $1.27 billion. This significant figure highlights the potential market impact if Bitcoin's price were to drop below this threshold. The liquidation intensity refers to the relative importance of each liquidation cluster compared to neighboring clusters, rather than the exact number of contracts pending liquidation or the precise value of liquidated contracts.

Conversely, if Bitcoin's price surpasses $108,000, the cumulative short liquidation intensity on major CEXs would reach $538 million. This indicates that a price surge above $108,000 could also trigger substantial liquidations, albeit on the short side. The liquidation chart provides a visual representation of these potential market movements, illustrating the intensity of liquidations at different price points.

It is important to note that the liquidation chart does not represent the exact number of contracts pending liquidation or the precise value of liquidated contracts. Instead, the bars on the chart illustrate the relative importance of each liquidation cluster compared to neighboring clusters, i.e., their intensity. This means that while the chart provides valuable insights into potential market movements, it should not be taken as a precise prediction of liquidation events.

In summary, the data from Coinglass suggests that Bitcoin's price movements around $105,000 and $108,000 could have significant implications for the market, with potential liquidations reaching billions of dollars. Traders and investors should be aware of these thresholds and the potential market impact if Bitcoin's price were to move in either direction. However, it is crucial to remember that the liquidation chart provides a relative measure of intensity rather than exact figures, and should be used as a tool for understanding potential market movements rather than as a precise prediction of liquidation events.